Energy Market Discussed

During the March Luncheon Karlis Mikelsons, CEO and President of Latvenergo addressed members on his views on the energy market and presented recent activities and development plans of Latvenergo. After the closure of Ignalina NPP, Latvenergo role in the Baltic market has increased, he said.

He emphasized the necessity to reduce dependency on Russia’s energy resources, which is 400 MW gap of energy supply, and make the company more competitive in the Baltic and even Nordic energy market.

Despite the fact that Latvenergo is owned by the state, it aims at operating with profit. According to Mr. Mikelsons, „We are not civil servants. We are a business oriented enterprise that takes care of its shareholder’s, that is state’s, revenue.” He stated that Latvenergo should be looking in the direction of competitive entrepreneurship.

Mr. Mikelsons also discussed good corporate governance which, according to him, is crucial for any state-owned company so they are run efficiently in the best interests of their shareholders and stakeholders. “The legal and regulatory framework of state-owned enterprises should ensure a level playing field in markets where state-owned enterprises and private sector companies compete to avoid market distortions. The framework should be fully compatible with the OECD principles of Corporate Governance”, he added.

When asked about privatization of state-owned companies, Mr. Mikelsons said that he personally is very much in favor of the idea.